Introduction
With the rise of the Internet came the opportunity for businesses to reach a large audience through an e-commerce business model. However, increasing competition and customer expectations demand that businesses be on their toes and consistently innovate to improve customer experience.
Today, given the wide digital acceptance and social media prevalence, one bad customer experience can spiral down the brand image, leading to a risk of massive loss. So, how can online businesses thrive in such a competitive market with such risk? Businesses can succeed in their niche by efficiently managing customer communications and strengthening relationships with an e-commerce CRM.
So, let’s explore what an e-commerce CRM is, why businesses need one, and how to choose the best one for your business.
What is an e-commerce CRM?
An Ecommerce CRM is a specially designed customer relationship management (CRM) system that helps online businesses centralize customer data, manage communications, optimize sales operations, and offer customer service.
An e-commerce CRM streamlines the customer’s journey through smooth, efficient communications, automated operations, and improving collaboration among teams to boost customer satisfaction with a business.
Data from popular reports indicate that 59% of organizations believe CRM applications have helped them improve customer retention (by 47%), customer satisfaction rate (by 47%), and reduce lead cost (by 27%).
Benefits of an e-commerce CRM
Let’s explore the benefits of an e-commerce CRM for an online business.
- • Better customer experience: With the centralized customer data storage in a CRM, businesses have a systematic view of customer interactions, sales funnel journey, support history, and customer personal information, which can help them optimize their service in the future. additionally, inter-team collaborations are significantly improved as every team has real-time access to centralized customer records. Systematic customer data management enhances customer engagement at every touchpoint through the sales funnel and improves customer satisfaction.
- • Analyze marketing metrics: For marketing success, it is essential to have accurate data to strategize future marketing campaigns. An e-commerce CRM system is a significant tool that helps teams understand lead behavior, product preferences, most used digital channels, customer segments, etc. With CRM data, it is possible to optimize major marketing metrics like click-through rates, cost-per-click, customer engagement, frequency of purchase, etc.
- • Automation: Often, poor engagement between customers and businesses comes from overburdened business representatives occupied with repetitive, manual tasks. However, an e-commerce CRM is capable of automating repetitive tasks and critical workflows that free up representatives to engage in critical issues, strategic brainstorming, and interact with customers needing specialist intervention.
- • Manage logistics: As CRM software provides comprehensive data on customer preferences and demand, it can help an online business optimize its logistic supply. With accurate data analytics, it is possible to eliminate oversupply, restock high-demand products, pre-order certain products, etc.
- • Reduced customer retention cost: Usually, the cost of retaining a customer increases with increasing numbers of people for engaging, nurturing, and moving a customer through the sales funnel increases. An e-commerce CRM cuts this cost by automating critical tasks, thus allowing businesses to optimize their efforts to get more leads.
- • Generate business insights: CRM software is a centralized hub for customer data, which businesses can analyze to gain insights about customer preferences, lead sources, campaign performance, purchase behavior, etc. By carefully analyzing such data, companies can optimize their workflows and strategize to innovate that may improve customer experience.
Features of an e-commerce CRM
Commercial vendors offer hundreds of features for CRM software, but only a few core features are essential in any application. Some of them are;
How to choose an e-commerce CRM software for your business
Every online business is different than the other. So, while selecting an e-commerce CRM, you should define your business size, objective, team size, and budget. Here’s an outline of the steps you should follow when planning to implement an e-commerce CRM for your business.
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1. Define a budget
First thing first, you need to set a budget for implementing CRM software. There are numerous companies that offer a CRM solution with varying different pricing. Setting up a budget will allow you to stay within a reasonable price range that won’t hinder other activities. Often, it is seen that companies offer a trial plan with a subsequent option to scale up the plan.
Additionally, though the companies may offer a monthly pricing option, annual billing will allow you to secure some discount and save on the overall CRM investment.
2. Set an objective
Setting up an objective is essential for selecting an appropriate CRM software. Based on your goal, you can shortlist the CRM types or request customization. Your goal may be short-term or long-term, which will require a consistent increase in feature customization further down the line.
Your goal will allow you to sequentially plan to subscribe to a plan and test out the results in a phased manner. This way, you can control your budget without unnecessary expenditures.
3. Select a CRM software
There are various types of CRM software based on their capabilities and the functions they perform. Here is a small detail of the types of CRM software;
- • Collaborative: As the name conveys, collaborative CRM software focuses upon internal collaboration based on customer data. It allows internal teams to communicate better with each other and work in synchronization to reach a common goal of improving customer experience or higher lead generation.
- • Operational: Operational CRM software iterates on improving workflows like marketing automation, lead management, email campaigns, lead nurturing, etc.
- • Analytical: As the name suggests, analytical CRM software focuses on gathering critical data on purchase behavior, customer preferences, or customer feedback to be analyzed for improvisation or changes in the business.
4. Outline required features
Now, it is essential to list out the features that you would need to reach your target objectives. You can include functionalities, user access, and customizations that you are expecting with your CRM software. If the list is exhaustive, you can prioritize and categorize features into different lists and ensure to acquire them in a phased manner with subscription upgrades.
5. Perform research
Next comes the exhaustive part, where you need to research a bit to figure out the best CRM system as per your objectives. You can refer to online software review platforms to find out the best CRM software in its category. Compare features, pricing, reviews, customization options, and integrations to narrow down the one that fits your requirements.
6. Go live with trial
Most software applications are provided with a trial run for the user to understand the technicality, feasibility, and hands-on usability. It is best to check the support services during this period, which will help you decide if you wish to subscribe to the software.
Ask questions to ensure the application meets your requirements and will help you reach your objectives.
Conclusion
The selection of the proper e-commerce CRM system stands as a vital decision for advancing your internet-based business operations. Selecting a system from this guide will help you find the right system that combines operational efficiency with improved client relationships while promoting your business growth.
Frequently Asked Questions
Analysis of CRM options for eCommerce requires examination of factors including budget, company dimensions, unique business requirements, integration compatibility, interface simplicity, and scalability potential alongside support services.
Record customer acquisition cost (CAC) together with customer lifetime value (CLTV) monitor conversion rates, and track sales growth.
Using an e-commerce CRM helps your company expand customer understanding, which leads to better relationships and sales growth combined with evidence-based business decisions.
In a cut-throat online business, where customer expectations are increasing consistently, businesses are expected to offer a superior customer experience and ensure customer retention. An e-commerce CRM provides complete customer information, analyzes shopping trends, personalizes experiences through curated marketing and support activities, and boosts sales with lead qualification and forecasting.
Moreover, it provides data-driven insights from customer data that can help businesses plan strategic campaigns and improvise products.
Every business, no matter the size, tends to benefit from an e-commerce CRM. Here are a few reasons why your online business needs an e-commerce CRM.
• Organize your workflows, track customer interactions, and visualize a leads sales funnel journey.
• Gain analytical insight regarding customers through shopping trends, product preferences, product reviews, etc.
• Bring automation to your workflows and get done with email campaigns and repetitive tasks, like data entry.
• Improve customer experience through consistent interactions, follow-ups, and prompt support services.
Yes, most e-commerce companies use CRM for their business to;
• Improve efficiency
• Automate tasks
• Gain analytical insights
• Personalize experience
• Boost customer loyalty
Nisha Sneha
Nisha Sneha is a passionate content writer with 5 years of experience creating impactful content for SAAS products, new-age technologies, and software applications. Currently, she is contributing to Kenyt.AI by crafting engaging content for its readers. Creating captivating content that provides accurate information about the latest advancements in science and technology has been at the core of her creativity.
In addition to writing, she enjoys gardening, reading, and swimming as hobbies.
